The Enforcement Directorate (ED) on Friday conducted searches at multiple locations in Delhi and neighbouring Gurugram in connection with the National Stock Exchange (NSE) co-location scam.
According to the agency sources, about 10 places linked to stock brokers were searched during the operation. The ED probe is based on a First Information Report (FIR) registered by the Central Bureau of Investigation (CBI) in 2018, alleging that from 2010 to 2014, Delhi-based stock broker OPG Securities gained preferential access to the NSE's market feed via its secondary server, in connivance with its data-centre staff.
The firm used an algorithmic trading software package developed by co-accused Ajay Narottam Shah, on the basis of the exchange's trade data collected by him in 2005-06 on the pretext of research work.
